Resort MP John Pugh has hailed the budget changes as a first step in the pensioners' liberation movement.

Chancellor of the Exchequer, George Osbourne, last week announced tax changes in the budget that will boost pensioners and savers – who have recently been hit by low interest rates.

The changes will give savers a new annual tax-free ISA limit of £15,000 – while pensioners are set to have more freedom to cash in as much or as little of their pension pots as they wish.

George Osbourne also outlined a new pensioner bond savings scheme – available from January to all those over 65 – that will pay interest rates of 2.8% for one-year bonds and 4% for three-year bonds.

In response to the changes, Lib Dem Southport MP, John Pugh, told the Visiter that it is a ‘new sort of freedom from the bondage of the big pension firms and institutions.’

“Too often in the past, later years have been a matter of waiting for the value of the pension to run out and the care costs to kick in. Now with this budget many pensioners have new options,” said Dr Pugh.

“Savings can be made to pay off with ISA limits raised and pensioners' bonds.

“I don't think there will be many grannies in Southport buying Lamborghinis but there will be quite a few who will be working out how they can avoid losing their house if they need care.

“With a new Care Bill going through as well the changes – costs are going to be much more manageable.

“The coalition government cannot abolish ageing but it can do and is doing a lot to empower older people.

“There is more that can be done. It needs to be made easier for older people to help their own children on the housing ladder and I would like to see tax incentives to encourage older people to invest in sustainable technology.

“It is complete nonsense to think that every generation only thinks about itself.”

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